General Motors stock (GM) closed up more than 6.7% to just over $27.20 a share after the government announced plans to shed its ownership stake in the company.

House Speaker John Boehner announced Tuesday that Republicans would push for a "Plan B," separate from negotiations with the White House, that would extend decade-old tax cuts for everyone making less than $1 million a year.

The move was a surprise and came after the White House offered to raise top tax rates on households earning more than $400,000, higher than the $250,000 that President Barack Obama argued for during the campaign.

If the Obama administration and congressional Republicans don't strike a deal by Jan. 1, taxes go up for almost all Americans, and government spending will be cut across the board. The combination could lead to a recession.

Elsewhere on Wall Street, technology stocks and energy companies were among the early winners. Telecommunications companies and utilities fell the most in early trading.

Business software maker Oracle (ORCL) finished nearly 3.7% higher at $34.09 a share after reporting stronger earnings as companies splurged on software and other technology.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note fell three basis points to 1.8%.

Stocks in Asia and Europe were mostly higher.

In Europe, the FTSE 100 index of leading British shares closed up 0.4% to 45,961.59, while Germany's DAX 30 index ended up 0.2% at 7,688.50. The benchmark CAC-40 index in France finished 0.4% higher at 3,664.59.

In currency markets, when investor appetite for risk increases, traders often sell their dollar holdings and invest in foreign currencies, such as the euro. On Wednesday, the euro was at eight-month highs, up 0.1% at 1.3241.

The euro has also advanced in recent weeks from a stabilization in Europe's debt crisis, which earlier this year appeared to be threatening the currency's future.

"The second half of this year has brought a greater sense of commitment from euro zone officials towards maintaining the coherence of monetary union," said Jane Foley, an analyst at Rabobank International.

Tuesday's decision by debt rating agency Standard & Poor's to lift its credit rating on Greece by six notches also helped shore up Europe's single currency. The agency said the upgrade reflected its view that the other 16 countries using the euro are determined to keep the Greece inside the currency union.

Earlier in Asia, stocks did well too, with Hong Kong's Hang Seng index up 0.6% to 22,623.37 and Shanghai's main index of Chinese shares closing flat at 2,264.30.

Japan's Nikkei 225 index surged 2.4% to close at 10,160.40, the first time the benchmark has closed above 10,000 since April 3. The yen was trading weaker against the dollar at 84.42, down 0.2%.

The stock market advance came three days after a landslide election victory by the Liberal Democratic Party. Former Prime Minister Shinzo Abe, head of the LDP, has pledged to keep the yen from strengthening and take measure to boost the deflation-mired economy.